The European Commission has urged several EU countries, including Cyprus, Belgium, Bulgaria, Greece, Spain, and Romania, to fully implement VAT-related directives and new SME VAT rules.
The European Commission, in its July 2025 infringements package, issued a formal notice to Cyprus and reasoned opinions to Belgium, Bulgaria, Greece, Spain, and Romania on 17 July 2025, urging them to fully implement the Directive on VAT rates. Additionally, Bulgaria, Greece, Spain, and Romania received reasoned opinions to fully transpose the new EU VAT rules for the special SMEs scheme.
Commission calls on CYPRUS to fully transpose the Directive on VAT rates
The European Commission decided to open an infringement procedure by sending a letter of formal notice to Cyprus (INFR(2025)2094) for failing to communicate the full transposition of the Directive on rates of VAT (Directive 2022/542). Member States had to transpose this Directive into national law by 31 December 2024. The Directive on rates of VAT allows for a wider use by Member States of reduced rates, including the use of zero rates for essential products such as food, pharmaceuticals, and products intended for medical use. The Commission is therefore sending a letter of formal notice to Cyprus, which now has two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
Commission calls on BELGIUM, BULGARIA, GREECE, SPAIN, and ROMANIA to fully transpose the Directive on VAT rates
Today, the European Commission decided to send a reasoned opinion to Belgium (INFR(2025)0004), Bulgaria (INFR(2025)0010), Greece (INFR(2025)0042), Spain (INFR(2024)0048), and Romania (INFR(2025)0098) for failing to bring their national laws in line with the mandatory provisions of Directive 2022/542 on rates of VAT. The Directive allows for a wider use by Member States of reduced rates, including the use of zero rates for essential products such as food, pharmaceuticals and products intended for medical use. The five Member States mentioned above failed to communicate the full transposition of the Directive, which should have been done by 31 December 2024. Therefore, the European Commission has decided to issue a reasoned opinion to Belgium, Bulgaria, Greece, Spain, and Romania, who now have two months to respond and take the necessary measures; otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union with a request to impose financial sanctions.
Commission calls on BULGARIA, GREECE, SPAIN, and ROMANIA to fully transpose the new EU VAT rules for the special SMEs scheme
Today, The European Commission decided to send a reasoned opinion to Bulgaria (INFR(2025)0009), Greece (INFR(2025)0041), Spain (INFR(2024)0047), and Romania (INFR(2025)0097) for failing to bring their national laws in line with the modifications introduced by Directive 2020/285 on the special scheme for small enterprises. The Directive allows small enterprises to sell goods and services without charging VAT and alleviates their VAT compliance obligations. Moreover, small enterprises established in another Member State than where VAT is due may exempt their supplies from VAT in the same way as domestically established small enterprises can in their respective Member State. Therefore, the Commission has decided to issue a reasoned opinion to Bulgaria, Greece, Spain, and Romania, which now have two months to reply and take the necessary measures. Otherwise, the Commission may decide to refer the cases to the Court of Justice of the European Union with a request to impose financial sanctions.
